Latest developments in the parliament of the City State of Berlin that took place last Wednesday (25th October 2012).

The SPD / CDU coalition agreed to buy back RWE’s 24.9% share in the Berlin Water Company for EUR 654 million, even though RWE had already amortized more than the sum it paid in 1999. This high price is based on an estimate of RWE’s profit over the next 16 years until 2028. But this pales into insignificance compared to the terms of a new contract with the other private partner, Veolia, which, as far as we have been able to ascertain, is concluded for a further 30 years.

On 30th May, the Madrid government announced its decision to give up for the time being, the privatization of the Canal Isabel II. Due to the actual economic situation posing an obstacle to its sale to private companies. However, it still announced the creation of a 100% public limited company, called Canal de Isabel II Gestión SA to manage the full cycle of water.

On the 6th of June, the board of directors of Canal Isabel II approved the establishment of the new company, signed off the inventory of assets and statutes of the new company and its program of activity, even though the vote was opposed by the company’s work council, a representative body of workers and management. Its members had not received sufficient information to formulate a position on the establishment of the new company.

On 13 February 2011, a referendum initiated by citizens (“Unser Wasser” = Our Water) was won by votes from 666 235 Berliners. It required the disclosure of the sales contracts, secret until now, concerning 49.90% of the water in Berlin. This victory will bring about the withdrawal of RWE and Veolia from the “Berliner Wasserbetriebe” (BWB, the water company in Berlin).